Business
ACTION ENERGY INC. AND CAVALON CAPITAL PARTNERS INC. ENTER INTO FINANCIAL SUPPORT AND FORBEARANCE AGREEMENT
Feb. 18, 2011 (TheNewswire.ca) -- CALGARY, ALBERTA (February 18, 2011) On February 17, 2011,...
About this update from Anfield Energy Inc
[{"type":"text","content":"\nACTION ENERGY INC. AND CAVALON CAPITAL PARTNERS INC. ENTER INTO FINANCIAL SUPPORT AND FORBEARANCE AGREEMENT\n\n\n Feb. 18, 2011 (TheNewswire.ca) -- CALGARY, ALBERTA (February 18, 2011) On February 17, 2011, Action Energy Inc. (TSXV:AEC.H) (TSXV:AEC) (OOTC:AECFF) (\"Action\")(NEX:AEC.H) and Cavalon Capital Partners Inc. (\"Cavalon\") executed a Financial Support and Forbearance Agreement (the \"Support Agreement\"). Action is presently indebted to Cavalon in the approximate principal amount of $2,746,604 with interest accruing thereon at the rate of prime plus 2.5% (the \"Debt\") and Cavalon holds various security interests granted by Action to secure repayment of the Debt (the \"Security\"). Pursuant to the Support Agreement, Cavalon has agreed to provide the financial support Action requires to enter into and perform the terms of the agreement Action and 2980622 Canada Inc. entered into with a group of labour and management services companies (\"Labour Companies\"), as a component of a labour restructuring being undertaken by the Labour Companies (the \"Agreement\"). The particulars of the Agreement were disclosed in a press release issued by Action on February 15, 2011. In addition, Cavalon has agreed to provide Action with ongoing financial support as Action undertakes the reorganization and revitalization of its business and affairs. Cavalon has also agreed to deliver to Action an income producing oil and gas property (the \"Property\") in order to provide Action with monthly cash flow. Cavalon has agreed that it will forbear in the enforcement of its Security so as to permit Action to retain as working capital a portion of the proceeds that may be received under the terms of the Agreement, to retain the income derived from the Property and to retain future receipts. Cavalon has also agreed to terminate the interest accruing on the Debt. Cavalon's financial support and forbearance are conditional upon Action repaying a portion of the Debt from the proceeds that may be derived from the Agreement. Action and Cavalon have agreed that the most efficient way to achieve most of the Debt repayment and the transfer of the Property from Cavalon to Action is for Action to acquire all of the issued and outstanding shares of Cavalon. At the time of the acquisition of the Cavalon shares, Cavalon will hold a portion of the Action Debt a...